What’s Next for Polkadot Price After Its Rally to $1.7?

• Polkadot price offers a massive breakout from the resistance trendline of a multi-month wedge pattern formation.
• Derivative actively amplified the price recovery as futures open interest for DOT jumps to $253 million.
• The upcoming March 14, 2026 issuance reduction is expected to cut annual token creation by over 50%, tightening future supply. 

DOT, the native cryptocurrency of the Polkadot network, has roared back into the spotlight following a massive 34% single-day surge on Wednesday. While the bullish uptick aligns with broader market recovery, the Polkadot price gained additional traction due to its breakout from multi-months resistance, renewed surge in derivative trading, potential ETFs launch, and upcoming halving. Will the coin price sustain further growth? 

Key Catalysts Behind the Massive DOT Spike

On February 25th, the crypto market witnessed a sudden inflow, following U.S. president Donald Trump’s State of the Union address. The renewed optimism for risky assets pushed Bitcoin price to $69,000 mark before it reverted to $67,000 today.

However, the Polkadot price was the star performer among top coins, as it surged over 34% on Wednesday to reclaim $1.7, before its pullback to $1.5 as well.

In a recent tweet, cryptocurrency influencer Lark Davis, mentioned three possible reasons why DOT gave this massive spike.

First, anticipation is growing around the initial reduction in issuance of the network set for March 14, 2026, which will reduce the creation of new DOTs by over half yearly and put the network on a trajectory of lesser long-term supply growth. 

Second, the buzz to bring potential spot exchange traded funds from players such as Grayscale and 21Shares has created expectations for more accessible institutional entry. 

Third, price action revealed a clean move above the 20-day exponential moving average plus strong resistance around $1.40 with buyers defending levels around $1.23 with patterns often used to suck in momentum driven participants.

In addition, the open interest associated with DOT’s futures contracts recorded a significant increase. According to Coinglass data, Polkadot’s OI jumped $148.5 million to $253.2 million in the last 48 hours. This buildup points to heightened trader positioning and leveraged bets aligning with the spot price advance, reflecting growing market participation amid the volatility.

Polkadot Price Exits Multi-Month Correction

Over the past five months, the Polkadot price correction has maintained its trajectory strictly between two converging trendlines, revealing the formation of a falling wedge pattern. The chart setup is commonly spotted at the end of a downtrend as shallows dip during the lower-low formation in price suggest weakening bearish momentum.

Amid the recent market jump, the DOT coin gave a decisive breakout from the pattern’s resistance trendline at $1.4. The breakout signals a shift in market momentum as buyers could acquire a key support to drive higher recovery.

The daily RSI slope back above 55% mark reinforces the recent breakout with positive market sentiment. With sustained buying, the post-breakout rally could push the price to $2.35 for its initial target.

DOT/USDT -1d Chart

On the contrary, the Polkadot price is down 6% today, preparing to retest the breached resistance as potential support. If the buyers failed to defend the new support, the price reenters the wedge pattern zone, the bullish thesis will get invalidated.

Source: https://www.cryptonewsz.com/whats-polkadot-price-rally-to-1-7/